The Destiny Credit Card targets consumers with poor or limited credit histories. Offered by First Electronic Bank, it comes with high fees and interest rates compared to traditional credit cards but does not require a security deposit or credit check. The Destiny Card aims to help subprime borrowers start rebuilding credit.
What is Destiny Credit Card
The Destiny Card is an unsecured credit card that accepts applicants regardless of credit score or history, including bankruptcies and foreclosures. It reports cardholder activity to all three major credit bureaus – Equifax, Experian, and TransUnion. Responsible usage can improve scores over time. The card carries multiple version numbers but shares overall traits of high costs and limited perks, suiting only short-term credit improvement goals.
Credit Qualification Terms
No formal credit checks are conducted for Destiny Card applications. Lenders analyze applicant eligibility based on income, debt levels, and other information provided. There is a pre-qualification process allowing the discovery of potential approval chances without hard inquiries impacting your score. Verified gross monthly income over $1000 is recommended for managing the card responsibly.
Fees and Interest Rates
The different Destiny Card variants have annual fees ranging from $39 to $175, which are charged upon account opening. Additionally, monthly payments between $10 to $15 may apply after the first year with some cards. The APR averages 29.99% to 35.99% based on the assigned card tier. Late fees can accrue up to $40 with a $25 overlimit fee possibility for opting for transactions over the credit ceiling. Foreign transactions also attract extra charges.
Credit Limits and Usage
The credit limit range spans $300 to $700, varying by Destiny Card version allotted post-approval. Initial spending capacity shrinks by the deducted annual fee. Ideal usage involves limiting spending below 30% of total limits monthly paying balances in full while keeping payments on schedule to avoid late penalties. This builds positive reporting, helping credit improvement.
Application and Account Management
Applications initiate after completing the pre-qualification step confirming viable approval odds without credit checks. This is followed by submitting basic personal information, income status, contact details, and banking information to trigger underwriting. E-sign the final terms to complete documentation. Manage accounts via online portals or telephonic support, providing usage statements, payment options, account services, and fee notifications.
The Destiny Card strictly suits short-term credit scoring goals despite higher consumer costs. Graduating to prime lender products with more robust credit profiles remains the eventual target. Hence, maintain prudent usage, capped balances, and timely installments. The card issuer provides requisite guardrails to facilitate responsible rebuild journeys for borrowers needing a credit jumping-off point through the high-touch services.
FAQs
What credit score is needed for a Destiny Card?
The Destiny Card has no specific credit score requirements and performs only a soft credit check. They accept applicants across all credit profiles, including bad credit or no formal credit history.
Does the Destiny Card require a security deposit?
No, the Destiny Card does not require any security deposit to open the account since it is an unsecured credit card. This makes it more accessible for those with lower incomes and savings.
Can the Destiny Card help improve your credit?
Since it reports to all three major credit bureaus, responsible usage, such as maintaining low balances and on-time payments, can positively impact your credit score. However, the high APRs make carrying balances costly.
What are some pros and cons of the Destiny Card?
Pros: Easy approval odds for lousy credit or thin profiles; no hard credit checks; no deposit needed. Cons: It charges annual and possibly monthly fees, has very high interest rates, a low maximum credit limit, and no rewards programs.
What should you consider before applying for the Destiny Card?
Before applying, understand that it is a short-term, expensive credit solution meant only to help initiate credit-rebuilding journeys. Have sufficient recurring income to make timely payments, avoiding heavy penalties. Be prepared to graduate to prime lender cards with more robust profiles later.
